Karur Vysya Bank (KVB), established in 1916 in Karur, Tamil Nadu, is one of India’s oldest private sector banks with a strong regional presence in South India. Over the past decade, it has transformed into a modern, technology-driven institution offering retail banking, MSME loans, vehicle finance, and treasury services. With over 850 branches and a focus on operational efficiency, KVB has delivered consistent profitability and capital strength. As of January 2026, it remains a compelling mid-sized private banking stock for long-term investors. This article provides a data-driven outlook on the Karur Vysya Bank share price target 2026–2030.
Karur Vysya Bank: Company Overview
- Founded: 1916
- Managing Director: Shri B. Ramesh Babu
- NSE Symbol: KARURVYSYA
- Business Segments: Retail Banking (~65%), Corporate/Wholesale Banking (~20%), Treasury (~15%)
- Market Position: Strong regional bank with leadership in Tamil Nadu; expanding footprint in Karnataka, Andhra Pradesh, and Telangana
KVB maintains a robust capital adequacy ratio (CAR) of 18.17%, well above RBI’s 11.5% requirement. Its gross NPA stands at 3.12% and net NPA at 0.89%, reflecting disciplined credit underwriting.
Karur Vysya Bank: Key Financial Snapshot
| Metric | Value |
|---|---|
| Current Share Price | ₹268.20 |
| Market Capitalization | ₹25,905.49 Cr |
| No. of Shares Outstanding | 96.66 Cr |
| 52-Week High / Low | ₹270 / ₹162 |
| P/E Ratio (TTM) | 12.31 |
| P/B Ratio | 2.02 |
| EPS (TTM) | ₹21.77 |
| Book Value (TTM) | ₹132.38 |
| ROE | 17.68% |
| ROCE | 21.60% |
| Dividend Yield | 0.81% |
| Face Value | ₹2 |
| Net Interest Income | ₹4,259.92 Cr |
| Cost-to-Income Ratio | 47.25% |
| Capital Adequacy Ratio (CAR) | 18.17% |
| Profit Growth (YoY) | 20.99% |
| CASA % | 27.27% |
Karur Vysya Bank Share Price Target Forecast (2026–2030)
| Year | Target Price Range (₹) |
|---|---|
| 2026 | ₹280 – ₹310 |
| 2027 | ₹300 – ₹340 |
| 2028 | ₹320 – ₹375 |
| 2029 | ₹340 – ₹410 |
| 2030 | ₹360 – ₹450 |
Karur Vysya Bank Share Price Target 2026
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2026 | ₹280 | ₹310 |
KVB reported 20.99% YoY profit growth in FY2025, supported by stable asset quality and margin expansion. Trading at a P/E of 12.31 and P/B of 2.02—with ROE of 17.68%—the stock appears fairly valued relative to peers like Federal Bank or City Union Bank. A 2026 target range of ₹280–₹310 assumes continued credit discipline and no major slippages.
Karur Vysya Bank Share Price Target 2027
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2027 | ₹300 | ₹340 |
If the bank gradually improves its CASA ratio (currently 27.27%) and expands its retail loan book, earnings could grow at 15–18% annually. Assuming EPS reaches ₹24–₹26 by FY27 and P/E stabilizes at 12.5–13x, the 2027 target range of ₹300–₹340 is justified.
Karur Vysya Bank Share Price Target 2028
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2028 | ₹320 | ₹375 |
By 2028, benefits from digital scaling, branch rationalization, and cross-selling should reflect in margins. With ROCE of 21.60%—higher than ROE—the bank efficiently deploys capital. A P/E of 13–13.5x on projected EPS of ₹25–₹28 supports the ₹320–₹375 band.
Karur Vysya Bank Share Price Target 2029
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2029 | ₹340 | ₹410 |
Long-term tailwinds include rising credit penetration in South India and KVB’s strong MSME franchise. If competition doesn’t erode margins, EPS could reach ₹27–₹30 by FY29. At a P/E of 13–14x, the 2029 target is ₹340–₹410.
Karur Vysya Bank Share Price Target 2030
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2030 | ₹360 | ₹450 |
Over a five-year horizon, KVB’s appeal lies in capital strength and niche focus—not explosive growth. If ROE holds above 17% and dividends resume consistently, investor confidence will remain stable. A terminal P/E of 13.5–14.5x on FY30 EPS (~₹27–₹31) justifies the ₹360–₹450 range.
Karur Vysya Bank: Shareholding Pattern
| Category | Holding (%) |
|---|---|
| Public & Retail | 42.11% |
| Domestic Institutional Investors (DII) | 39.98% |
| Foreign Institutional Investors (FII) | 15.80% |
| Promoters | 2.10% |
The near-zero promoter holding reflects its widely held structure. High institutional ownership (55.78%) ensures liquidity and analyst coverage.
Karur Vysya Bank: Strengths vs Risks
Strengths:
- Exceptional ROCE (21.60%) and ROE (17.68%)
- Strong capital buffer (CAR: 18.17%)
- Clean asset quality (Net NPA: 0.89%)
- Consistent 5-year profit CAGR of ~22%
Risks:
- Low CASA ratio (27.27%) increases funding costs
- Minimal promoter holding may raise governance questions
- Contingent liabilities of ₹11,245 Cr require monitoring
- Limited national scale compared to top-tier private banks
Investment Suitability
| Factor | Assessment |
|---|---|
| Risk Profile | Moderate |
| Ideal Time Horizon | 5+ years |
| Volatility | Lower than market average; high liquidity |
| Dividend/Income Potential | Low (0.81% yield), but consistent payouts |
| Best For | Core portfolio holding for conservative to moderate-risk investors |
FAQs
What is the dividend of KVB 2025?
KVB declared an interim dividend of ₹2.60 per share in August 2025 and a final dividend of ₹2.40 per share in May 2025—totaling ₹5.00 per share for FY2025 (dividend payout ratio: ~23%).
What is the forecast for Karur Vysya Bank?
KVB is expected to deliver 15–18% annual earnings growth over the next 3–5 years, driven by retail loan expansion, stable margins, and efficient capital use. Asset quality and CASA improvement are key watchpoints.
Is Karur Vysya Bank giving bonus shares?
Yes. In July 2025, KVB announced a 5:1 bonus issue (5 bonus shares for every 1 held). The ex-bonus date was August 26, 2025. No further bonus announcements have been made as of January 2026.
What is the future target price?
Based on fundamentals and sector trends, the Karur Vysya Bank share price target for 2026 is ₹280–₹310. The 2026–2030 cumulative range is ₹280 to ₹450.
Final Verdict
Karur Vysya Bank has evolved into a disciplined, regionally strong private bank with fortress-like capital buffers and clean asset quality. While it lacks the scale of HDFC or ICICI, its operational consistency makes it a dependable long-term holding.
Our Karur Vysya Bank share price target 2026–2030 (₹280 to ₹450) reflects steady earnings growth, moderate multiple expansion, and sustained investor confidence. It won’t deliver explosive gains, but offers reliable compounding for those betting on India’s tier-2 banking evolution.
Disclaimer: Price targets are estimates based on publicly available data and sector analysis. They are not investment advice. Consult a SEBI-registered advisor before making decisions.
Sources
- Screener.in – Karur Vysya Bank Consolidated Page (FY2025 + TTM)
- Finology Ticker – KARURVYSYA Financials & Analysis
- Groww.in – Karur Vysya Bank Stock Profile
- KVB Investor Presentation (Q3 FY26, Jan 2026)
- RBI Guidelines on Capital Adequacy and Asset Classification
